American Tower sells $1.4 billion bonds; Duke Realty, Cowen, New Brunswick tap primary

By Cristal Cody

Tupelo, Miss., Dec. 5 – American Tower Corp. brought $1.4 billion of senior notes in two tranches to the investment-grade primary market on Tuesday.

Duke Realty LP placed $300 million of 10-year senior notes.

Cowen Inc. sold $120 million of 10-year senior notes.

Also, the province of New Brunswick priced a $500 million offering of five-year bonds.

Deal action was strong on Monday with new bonds priced from issuers that included Westpac Banking Corp., Charles Schwab Corp., Public Service Electric & Gas Co. and J.M. Smucker Co.

Market sources expect steady deal action through Dec. 15.

About $30 billion of deal volume was forecast by market participants for this week.

The Markit CDX North American Investment Grade 29 index was modestly tighter on the day at a spread of 52 basis points.

American Tower sells notes

American Tower priced $1.4 billion of senior notes (Baa3/BBB-/BBB) in two tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.

The company sold $700 million of 3% notes due June 15, 2023 at 99.742 to yield 3.051%, or a spread of Treasuries plus 90 bps.

American Tower priced $700 million of 3.6% notes due Jan. 15, 2028 at 99.476 to yield 3.662%. The notes priced with a Treasuries plus 130 bps spread.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC and Scotia Capital (USA) Inc. were the bookrunners.

Proceeds will be used to repay debt under the company’s 2013 credit facility and its 2014 credit facility and for general corporate purposes.

American Tower is a telecommunications provider based in Boston.

Duke Realty brings deal

Duke Realty sold $300 million of 3.375% 10-year senior notes (Baa1/BBB+/) at 99.848 to yield 3.393%, or a spread of Treasuries plus 103 bps, on Tuesday, according to an FWP filed with the SEC.

Barclays, Citigroup Global Markets, RBC Capital Markets, U.S. Bancorp Investments Inc., Jefferies LLC and SunTrust Robinson Humphrey, Inc. were the bookrunners.

Proceeds will be used for development and general corporate purposes, and the company may use a portion of the proceeds to repay debt under its revolving credit facility.

Duke Realty is the operating partnership of Indianapolis-based Duke Realty Corp., which owns and operates industrial and health care properties.

Cowen prices $25-par notes

Cowen sold $120 million of 7.35% $25-par senior notes due Dec. 15, 2027 on Tuesday, according to an FWP filed with the SEC.

Morgan Stanley, UBS Securities LLC and Cowen and Co., LLC were the bookrunners.

There is an $18 million over-allotment option.

The securities will be listed on the Nasdaq exchange.

Proceeds will be used to redeem all of the company’s 8.25% senior notes, which mature on Oct. 15, 2021, and for general corporate purposes.

Cowen is a financial services firm based in New York.

New Brunswick sells notes

New Brunswick sold $500 million of 2.5% five-year bonds (Aa2/A+/) on Tuesday at 99.799 to yield 2.543%, according to an FWP filing with the SEC.

The bonds priced at a spread of mid-swaps plus 32 bps, or Treasuries plus 37.8 bps.

BMO Capital Markets Corp., RBC Capital Markets, LLC, Scotia Capital and TD Securities (USA) LLC were the bookrunners.

Proceeds will be used to refinance existing debt with remaining proceeds to be used for general provincial purposes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.